Why does CBS collect tax in our state when they are located in NC?
The reason we collect sales tax and submit the proceeds back to fill in state is because we are registered as a business in the state. We have been registered since fill in date from chart. Although we do not have a physical building in the state; we attend exhibits, have sales people that visit the state or enough other presence in the state to create a nexus. A nexus in a state requires registration.
Definition of Nexus:
Nexus means a business entity has established a direct or representational presence within a particular state or jurisdiction. This presence gives the state the right to require a company to pay or collect and remit certain taxes.
Why does CBS collect tax in CA on shipping and handling charges?
Although freight charges in California are not taxable, our invoices bill a combined freight and handling charge. In accordance with the Board of Equalization rules because we do not separately state freight, we are obligated to submit sales tax to the State of California on our freight and handling charges. Please note that this rule has been built into our Avalara Sales Tax Software.
CAROLINA has the irrepressible obsession of a company founded by scientists and educators–understanding the ever-changing challenges that educators face and how to address them. Everything we do is about serving educators better.
2700 York Road
Burlington, NC 27215-3398